RELATING TO ELECTIONS; PROHIBITING CERTAIN CONTRIBUTIONS AND
SOLICITATIONS OF CONTRIBUTIONS BY LOBBYISTS, SEEKERS OF
TARGETED SUBSIDIES, THE PRINCIPALS OF SEEKERS OF TARGETED
SUBSIDIES, STATE CONTRACTORS AND THE PRINCIPALS OF STATE
CONTRACTORS; PROHIBITING CERTAIN SOLICITATIONS OF CONTRIBUTIONS
FROM LOBBYISTS, SEEKERS OF TARGETED SUBSIDIES, THE PRINCIPALS
OF SEEKERS OF TARGETED SUBSIDIES, STATE CONTRACTORS AND THE
PRINCIPALS OF STATE CONTRACTORS; PROHIBITING THE BUNDLING OF
CONTRIBUTIONS BY LOBBYISTS, SEEKERS OF TARGETED SUBSIDIES, THE
PRINCIPALS OF SEEKERS OF TARGETED SUBSIDIES, STATE CONTRACTORS
AND THE PRINCIPALS OF STATE CONTRACTORS; REQUIRING DISCLOSURE
OF CONTRIBUTIONS DIRECTED OR KNOWINGLY USED TO SUPPORT
POLITICAL ADVOCACY; RECONCILING MULTIPLE AMENDMENTS TO THE SAME
SECTION OF LAW IN LAWS 2009; REPEALING LAWS 2009, CHAPTER 68,
SECTION 2.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. A new section of the Campaign Reporting Act is
enacted to read:

"[NEW MATERIAL] LOBBYISTS--CONTRIBUTIONS FOR CANDIDATES
AND CERTAIN POLITICAL COMMITTEES PROHIBITED.--

A. A lobbyist that is subject to the Lobbyist
Regulation Act shall not make a contribution to or solicit a
contribution on behalf of or for the benefit of:

(1) a candidate for nomination or election to
a state public office or a political committee established by
the candidate; or

(2) a political committee if:

(a) the committee is established by a
state public officer or an agent of the officer or in
consultation with or at the request of the officer or agent of
the officer;

(b) the committee is controlled by a
state public officer or agent of the officer to aid or promote
the nomination or election of one or more candidates for state
public office; or

(c) the contributor knows or requests
that the contribution will be used for the benefit of or given
to a candidate for nomination or election to a state public
office.

B. A state public officer, candidate or political
committee described in Subsection A of this section shall not
accept or solicit a contribution prohibited by that subsection.

C. The provisions of this section shall not
restrict a lobbyist from establishing a political committee for
the lobbyist's own campaign or from soliciting contributions
for that campaign from persons not prohibited from making
contributions pursuant to this section.

D. The provisions of this section shall not
preclude a lobbyist from making contributions or expenditures
to promote the success or defeat of a ballot measure."

Section 2. A new section of the Campaign Reporting Act is
enacted to read:

"[NEW MATERIAL] STATE CONTRACTORS--CONTRIBUTIONS FOR
CANDIDATES AND CERTAIN POLITICAL COMMITTEES PROHIBITED.--

A. A state contractor or principal of a state
contractor shall not make a contribution to or solicit
contributions on behalf of or for the benefit of:

(1) a candidate for nomination or election to
a state public office or a political committee established by
the candidate; or

(2) a political committee if:

(a) the committee is established by a
state public officer or an agent of the officer or in
consultation with or at the request of the officer or an agent
of the officer;

(b) the committee is controlled by a
state public officer or an agent of the officer to aid or
promote the nomination or election of one or more candidates
for state public office; or

(c) the contributor knows or requests
that the contribution will be used for the benefit of or given
to a candidate for nomination or election to a state public
office.

B. A state public officer, candidate or political
committee described in Subsection A of this section shall not
accept or solicit a contribution prohibited by that subsection.

C. The provisions of this section shall not
restrict a principal of a state contractor from establishing a
political committee for the principal's own campaign or from
soliciting contributions for that campaign from persons not
prohibited from making contributions by this section.

D. The provisions of this section shall not
preclude a state contractor or a principal of a state
contractor from making contributions or expenditures to promote
the success or defeat of a ballot measure.

E. The provisions of this section supplement and do
not limit the provisions of other statues or agency rules that
may further limit contractor contributions."

Section 3. A new section of the Campaign Reporting Act is
enacted to read:

"[NEW MATERIAL] SEEKERS OF TARGETED SUBSIDIES--CONTRIBUTIONS FOR CANDIDATES AND CERTAIN POLITICAL COMMITTEES
PROHIBITED.--

A. A seeker of a targeted subsidy or a principal of
a seeker of a targeted subsidy shall not make a contribution to
or solicit a contribution on behalf of or for the benefit of:

(1) a candidate for nomination or election to
a state public office or a political committee established by
the candidate; or

(2) a political committee if:

(a) the committee is established by a
state public officer or an agent of the officer or in
consultation with or at the request of the officer or agent of
the officer;

(b) the committee is controlled by a
state public officer or agent of the officer to aid or promote
the nomination or election of one or more candidates for state
public office; or

(c) the contributor knows or requests
that the contribution will be used for the benefit of or given
to a candidate for nomination or election to a state public
office.

B. A state public officer, candidate or political
committee described in Subsection A of this section shall not
accept or solicit a contribution prohibited by that subsection.

C. The provisions of this section shall not
restrict a principal of a seeker of a targeted subsidy from
establishing a campaign committee for the principal's own
campaign or from soliciting contributions for that campaign
from persons not prohibited from making contributions pursuant
to this section.

D. The provisions of this section shall not
preclude a seeker of a targeted subsidy or a principal of a
seeker of a targeted subsidy from making contributions or
expenditures to promote the success or defeat of a ballot
question."

Section 4. A new section of the Campaign Reporting Act is
enacted to read:

"[NEW MATERIAL] BUNDLING OF CONTRIBUTIONS.--A person
prohibited from contributing to or for the benefit of a
candidate for state public office by the Campaign Reporting Act
shall not facilitate the collection of contributions from legal
contributors that the person is prohibited from making on the
person's own behalf."

Section 5. A new section of the Campaign Reporting Act is
enacted to read:

"[NEW MATERIAL] DISCLOSURE OF FUNDING USED FOR POLITICAL
ADVOCACY.--

A. A person who engages in express advocacy or the
functional equivalent of express advocacy shall report the
details of the communication to the office of the secretary of
state if:

(1) the total price of the communication,
including production and distribution costs, is more than five
thousand dollars ($5,000) for a state race or five hundred
dollars ($500) for a local race; and

(2) the communication occurs within sixty days
before a general election or thirty days before a primary
election.

B. The report shall include the name and address of
the person making the communication, a digital or print copy of
the communication, the amount of the expenditure and the names
and addresses of all contributors who requested that their
contributions be used to fund the communication or who know
that their contributions are to be used to fund the
communication. The report must be received by the office of
the secretary of state within five business days of the date on
which a contract is signed to produce or distribute the
communication.

C. Factors that may be considered in favor of a
communication being determined to be express advocacy include
the use of words such as "vote for", "elect", "support", "cast
your ballot for", "vote against", "defeat" or "reject" in
conjunction with a candidate's name.

D. Factors that shall be considered in favor of a
communication being determined to be the functional equivalent
of express advocacy include that:

(1) the communication mentions any election,
candidacy, political party, opposing candidate or voting by the
general public; or

(2) the communication takes a position on any
candidate's or officeholder's character, qualifications or
fitness for office.

E. Factors that shall be considered against a
communication being determined to be the functional equivalent
of express advocacy include that:

(1) the communication focuses on a public
policy issue and either urges a candidate to take a position on
the issue or urges the public to contact the candidate about
the issue;

(2) the communication proposes a commercial
transaction, such as the purchase of a book, video or other
product or service or the attendance, for a fee, at a film
exhibition or other event; or

(3) the communication includes a call to
action or other appeal that, interpreted in conjunction with
the rest of the communication, urges an action other than
voting for or against or contributing to a clearly identified
candidate or political party."

A. "advertising campaign" means an advertisement or
series of advertisements used for a political purpose and
disseminated to the public either in print, by radio or
television broadcast or by any other electronic means,
including telephonic communications, and may include direct or
bulk mailings of printed materials;

B. "anonymous contribution" means a contribution
the contributor of which is unknown to the candidate or the
candidate's agent or the political committee or its agent who
accepts the contribution;

C. "bank account" means an account in a financial
institution located in New Mexico;

D. "business entity" includes, whether organized
inside or outside of New Mexico, a sole proprietorship, a
partnership, a joint venture, a limited liability company, a
corporation and any other association, organization or entity
that is engaged in the operation of a business or profit-making
activity;

[D.] E. "campaign committee" means two or more
persons authorized by a candidate to raise, collect or expend
contributions on the candidate's behalf for the purpose of
electing the candidate to office;

[E.] F. "candidate" means an individual who seeks
or considers an office in an election covered by the Campaign
Reporting Act, including a public official, who either has
filed a declaration of candidacy or nominating petition or:

(1) for a non-statewide office, has received
contributions or made expenditures of one thousand dollars
($1,000) or more or authorized another person or campaign
committee to receive contributions or make expenditures of one
thousand dollars ($1,000) or more for the purpose of seeking
election to the office; or

(2) for a statewide office, has received
contributions or made expenditures of two thousand five hundred
dollars ($2,500) or more or authorized another person or
campaign committee to receive contributions or make
expenditures of two thousand five hundred dollars ($2,500) or
more for the purpose of seeking election to the office or for
candidacy exploration purposes in the years prior to the year
of the election;

[F.] G. "contribution" means a gift, subscription,
loan, advance or deposit of money or other thing of value,
including the estimated value of an in-kind contribution, that
is made or received for a political purpose, including payment
of a debt incurred in an election campaign, but "contribution"
does not include the value of services provided without
compensation or unreimbursed travel or other personal expenses
of individuals who volunteer a portion or all of their time on
behalf of a candidate or political committee, nor does it
include the administrative or solicitation expenses of a
political committee that are paid by an organization that
sponsors the committee;

[G.] H. "deliver" or "delivery" means to deliver by
certified or registered mail, telecopier, electronic
transmission or facsimile or by personal service;

[H.] I. "election" means any primary, general or
statewide special election in New Mexico and includes county
and judicial retention elections but excludes municipal, school
board and special district elections;

[I.] J. "election year" means an even-numbered year
in which an election covered by the Campaign Reporting Act is
held;

[J.] K. "expenditure" means a payment, transfer or
distribution or obligation or promise to pay, transfer or
distribute any money or other thing of value for a political
purpose, including payment of a debt incurred in an election
campaign or pre-primary convention, but does not include the
administrative or solicitation expenses of a political
committee that are paid by an organization that sponsors the
committee;

L. "express advocacy" means any communication that
asks the recipient to vote for or against a specific candidate
for public office;

M. "functional equivalent of express advocacy"
means any communication that is susceptible to no reasonable
interpretation other than as an appeal to vote for or against a
specific candidate for office and that is distributed via
broadcast, cable, satellite or print media to voters living in
the district the candidate seeks to represent;

[K.] N. "person" means an individual or entity;

[L.] O. "political committee" means two or more
persons, other than members of a candidate's immediate family
or campaign committee or a husband and wife who make a
contribution out of a joint account, who are selected,
appointed, chosen, associated, organized or operated primarily
for a political purpose; and "political committee" includes:

(1) political parties, political action
committees or similar organizations composed of employees or
members of any corporation, labor organization, trade or
professional association or any other similar group that
raises, collects, expends or contributes money or any other
thing of value for a political purpose;

(2) a single individual whose actions
represent that the individual is a political committee; and

(3) a person or an organization of two or more
persons that within one calendar year expends funds in excess
of five hundred dollars ($500) to conduct an advertising
campaign for a political purpose;

[M.] P. "political purpose" means influencing or
attempting to influence an election or pre-primary convention,
including a constitutional amendment or other question
submitted to the voters;

[N.] Q. "prescribed form" means a form or
electronic format prepared and prescribed by the secretary of
state;

R. "principal of a seeker of a targeted subsidy"
means, in addition to the seeker of a targeted subsidy itself:

(1) a person who is a member of the board of
directors of, or has an ownership interest in, a seeker of a
targeted subsidy, except for a person who owns less than five
percent of the shares of that seeker of a targeted subsidy that
is a publicly traded corporation;

(2) a president, treasurer or executive or
senior vice president of a seeker of a targeted subsidy that is
a business entity;

(3) a person who is the chief executive
officer of a seeker of a targeted subsidy;

(4) an employee of a seeker of a targeted
subsidy who has managerial or discretionary responsibilities
with respect to a targeted subsidy;

(5) the spouse or a dependent child of a
person described in Paragraphs (1) through (4) of this
subsection; or

(6) a political committee established by or on
behalf of a person described in this subsection;

S. "principal of a state contractor" means, in
addition to the state contractor:

(1) a person who is a member of the board of
directors of, or has an ownership interest in, a state
contractor, except for a person who owns less than five percent
of the shares of a state contractor that is a publicly traded
corporation;

(2) a person who is employed as president,
treasurer, executive vice president or senior vice president of
a state contractor that is a business entity;

(3) a person who is the chief executive
officer of a state contractor;

(4) an employee of a state contractor who has
managerial or discretionary responsibilities with respect to a
state contract;

(5) the spouse or a dependent child of a
person described in Paragraphs (1) through (4) of this
subsection; or

(6) a political committee established by or on
behalf of a person described in this subsection;

[O.] T. "proper filing officer" means either the
secretary of state or the county clerk as provided in Section
1-19-27 NMSA 1978;

[P.] U. "public office" means an office that is
subject to an election covered by the Campaign Reporting Act;

V. "public officer" or "public official" means a
person elected to an office in an election covered by the
Campaign Reporting Act or a person appointed to [an] a public
office; [that is subject to an election covered by that act;
and

Q.] W. "reporting individual" means every public
official, candidate or treasurer of a campaign committee and
every treasurer of a political committee;

X. "seeker of a targeted subsidy" means a person,
including a business entity or nonprofit organization, that
will directly benefit financially from a targeted subsidy;

Y. "state agency" means an office, department,
board, council, commission, institution or other agency in the
executive, legislative or judicial branch of state government;

Z. "state contract" means an agreement or
transaction with a state agency or an instrumentality of the
state having a value of twenty thousand dollars ($20,000) or
more, or a combination or series of such agreements or
transactions having a value of twenty thousand dollars
($20,000) or more, in a fiscal year for:

(1) the rendition of services, including
professional services and financial services;

(2) the furnishing of any material, supplies
or equipment;

(3) the construction, alteration or repair of
any public building or public work;

(4) the acquisition, sale or lease of any land
or building;

(5) a licensing arrangement;

(6) a loan or loan guarantee; or

(7) the purchase or sale of financial
securities or instruments or the investment of public money;

AA. "state contractor" means a person, including a
business entity or nonprofit organization, that enters into a
state contract, which person shall be deemed to be a state
contractor until the termination of the contract; but "state
contractor" does not include the state or a political
subdivision of the state or any full-time or part-time employee
of the state or a political subdivision of the state in that
person's capacity as an employee of the state or political
subdivision of the state;

BB. "state public office" means the office of
governor, lieutenant governor, attorney general, state
treasurer, state auditor, secretary of state, commissioner of
public lands, public regulation commissioner, state senator or
state representative;

CC. "state public officer" means a person elected
to or appointed to a state public office; and

DD. "targeted subsidy" means a financial benefit,
including a tax exemption, credit or reduction in taxes, that
is conferred by proposed legislation or the enactment of law on
an entity that is:

(1) named in the legislation or law as its
beneficiary; or

(2) described in the legislation or law in a
particularized manner that is the functional equivalent of
naming the entity as its beneficiary."

Section 7. REPEAL.--Laws 2009, Chapter 68, Section 2 is
repealed.

Section 8. SEVERABILITY.--If any part or application of
this act is held invalid, the remainder of its application to
other situations or persons shall not be affected.

Section 9. EFFECTIVE DATE.--The effective date of the
provisions of this act is November 3, 2010.